- Summary
- Nifty 50 funds invest in India’s 50 leading listed companies and offer a simple way to gain broad exposure to the large-cap market with a single investment.
- Nifty 50 funds offer exposure to established large-cap companies but still carry very high market risk and can fall during market downturns.
- Navi Nifty 50 Index Fund has the lowest expense ratio in the comparison at 0.06%, while Kotak Nifty 50 Index Fund also has a relatively low expense ratio of 0.07%.
- UTI Nifty 50 Index Fund has the highest AUM in the list at ₹29,603 crore, making it the largest fund among the selected options.
- All the selected funds track the same Nifty 50 benchmark, so factors such as expense ratio, tracking efficiency, AUM and SIP requirements become important when comparing them.
Nifty 50 funds are index mutual funds that aim to track the Nifty 50 Index, which consists of 50 of India’s largest and well-established listed companies. By investing in one Nifty 50 fund, investors get exposure to companies across major sectors such as banking, IT, energy and consumer businesses without having to buy individual stocks. These funds follow a passive investment strategy, meaning their main objective is to closely replicate the performance of the Nifty 50 rather than actively select stocks to beat the market.
Best 10 Nifty 50 Mutual Funds: Quick Comparison
Nifty 50 Mutual Fund from different mutual fund houses track the same underlying index but can differ in returns, AUM, expense ratio, tracking efficiency and minimum investment requirements. This guide compares 10 selected Nifty 50 funds using factors such as 3-year and 5-year CAGR, AUM, expense ratio, benchmark returns, minimum SIP and risk level as of 2nd September 2026.
| Fund name | Category/ Plan | 3 YR CAGR % | 5 YR CAGR % | Benchmark 5 yr Return % | AUM in ₹ crores | Expense Ratio % | Minimum SIP in ₹ | Risk |
| UTI Nifty 50 Index Fund | Direct Growth | 8.32 | 8.13 | 10.39 | 29,603 | 0.25 | 500 | Very High |
| HDFC Nifty 50 Index Fund | Direct Growth | 8.33 | 8.08 | 10.39 | 24,190 | 0.36 | 100 | Very High |
| ICICI Prudential Nifty 50 Index Fund | Direct Growth | 8.33 | 8.09 | 10.39 | 17,353 | 0.25 | 100 | Very High |
| SBI Nifty Index Fund | Direct Growth | 8.34 | 8.1 | 10.39 | 14,114 | 0.25 | 500 | Very High |
| Navi Nifty 50 Index Fund | Direct Growth | 8.42 | 8.16 | 10.39 | 4,148 | 0.06 | 100 | Very High |
| Nippon India Index Fund Nifty 50 | Direct Growth | 8.42 | 8.14 | 10.39 | 3,908 | 0.15 | 100 | Very High |
| Bandhan Nifty 50 Index Fund | Direct Growth | 8.4 | 8.19 | 10.39 | 2,797 | 0.08 | 100 | Very High |
| TATA Nifty 50 Index Fund | Direct Growth | 8.27 | 8.07 | 10.39 | 1,722 | 0.28 | 150 | Very High |
| Aditya Birla Sun Life Nifty 50 Index Fund | Direct Growth | 8.37 | 8.07 | 10.39 | 1,511 | 0.15 | 100 | Very High |
| Kotak Nifty 50 Index Fund | Direct Growth | 8.33 | 8.07 | 10.39 | 1,172 | 0.07 | 100 | Very High |
Top 10 Nifty 50 Mutual Funds in India
Nifty 50 index funds are designed for investors who want exposure to India’s largest listed companies through a single mutual fund. Although all the funds below broadly track the same Nifty 50 TRI, they differ in fund size, expense structure, tracking efficiency, investment minimums, and operating history. Below is a closer look at what makes each fund different.
1. UTI Nifty 50 Index Fund
UTI Nifty 50 Index Fund is one of the oldest funds in this category, having been launched in March 2000. It passively mirrors the Nifty 50, giving investors exposure to 50 large and actively traded companies on the NSE. The fund had a month-end AUM of ₹29,603 crore as of the latest data available on UTI Mutual Fund’s website, making it one of the largest funds tracking the index.
2. HDFC Nifty 50 Index Fund
HDFC Nifty 50 Index Fund follows a passive strategy by investing in the same stocks that form the Nifty 50 in closely matching proportions. The fund is designed for long-term investors seeking market-linked returns rather than active stock selection. HDFC also positions the fund as a simple way to gain diversified exposure to India’s leading large-cap companies through one investment. It has an AUM of ₹24,190 crore with an expense ratio of 0.36%.
3. ICICI Prudential Nifty 50 Index Fund
ICICI Prudential Nifty 50 Index Fund is built to provide investors with passive exposure to the companies included in the Nifty 50. Instead of relying on a fund manager to select stocks, the portfolio follows the composition and weight changes of the underlying index. This makes it suitable for investors who prefer a rule-based approach to large-cap equity investing. It has an AUM of ₹17,353 crore.
4. SBI Nifty Index Fund
SBI Nifty Index Fund gives investors access to the Nifty 50 through an index-based mutual fund structure. Its portfolio is designed to follow the index rather than make active bets on individual companies or sectors. This makes the fund more suitable for investors who want broad large-cap market exposure without regularly changing their portfolio. The fund has an AUM of ₹14,114 crore with a minimum SIP of ₹500.
5. Navi Nifty 50 Index Fund
Navi Nifty 50 Index Fund is a passive equity fund that aims to track the Nifty 50 Index. The fund offers investors a direct way to participate in the performance of India’s large-cap market without depending on active stock picking. Its main appeal is its straightforward index-investing structure. It has the lowest expense ratio amongst the listed funds of 0.06%.
6. Nippon India Index Fund Nifty 50
Nippon India Index Fund Nifty 50 is designed to track the Nifty 50 and replicate its broad large-cap market exposure. Investors get access to companies from sectors such as banking, IT, energy, consumer businesses and pharmaceuticals through a single scheme. Like other index funds, its objective is to stay close to the benchmark rather than beat it through active stock selection. It recorded one of the highest 3-year returns of 8.42% among the listed funds.
7. Bandhan Nifty 50 Index Fund
Bandhan Nifty 50 Index Fund provides passive exposure to the Nifty 50 and follows the index-based investing approach. The fund is meant for investors who want to participate in the performance of India’s established large-cap companies without relying on an actively managed portfolio. Bandhan Mutual Fund continues to provide scheme-specific material and presentations for the fund through its official platform.
8. TATA Nifty 50 Index Fund
Tata Nifty 50 Index Fund is known for its long operating history, with an inception date of 2003. The fund scheme invests in Nifty 50 securities in the same proportion as the index and aims to mirror its market returns with minimum tracking error. Its fund size was about ₹1,722 crore as of September 2, 2026. The minimum SIP amount for this fund is ₹150.
9. Aditya Birla Sun Life Nifty 50 Index Fund
Aditya Birla Sun Life Nifty 50 Index Fund is also one of the oldest funds, operating since 2002. The scheme normally allocates 95% to 100% of its investments to Nifty 50 securities and keeps a small proportion in cash and money-market instruments. Its AUM stood at around ₹1,511 crore as of September 2, 2026.
10. Kotak Nifty 50 Index Fund
Kotak Nifty 50 Index Fund was allotted in June 2021 and aims to replicate the composition of the Nifty 50 Index. The fund is designed for investors seeking long-term capital growth and returns linked to the Nifty 50, subject to tracking errors. The scheme also allows investments starting from ₹100 and has an AUM of about ₹1,172 crore.
How We Selected These Nifty 50 Funds
The Nifty 50 funds are selected based on the given factors.
- Underlying Benchmark: The funds are designed to track the Nifty 50 Index, which represents 50 major companies across 13 sectors of the Indian economy.
- AUM: Assets Under Management shows how much money investors have invested in the fund. A higher AUM can indicate the fund’s larger scale and investor participation.
- Expense Ratio: This is the annual cost charged for managing the fund. A lower expense ratio means a smaller portion of the investment is used towards fund management costs.
- Tracking Efficiency: This measures how closely each fund tracks the Nifty 50. A lower tracking error generally indicates that an index fund is following its benchmark more closely.
Nifty 50 Funds vs Other Fund Categories
The differences between Nifty 50 funds and other funds are outlined below.
| Basis | Nifty 50 Funds | Small Cap Funds | Mid Cap Funds |
| Main Investment | Invest in the 50 companies included in the Nifty 50 Index, covering many of India’s largest and well-established businesses. | Invest mainly in smaller listed companies that may have significant room to grow but can also face greater business and market uncertainty. | Invest mainly in medium-sized companies, which are generally more established than small caps yet still offer considerable growth potential. |
| Liquidity | Usually high because Nifty 50 companies are among the most actively traded stocks in the Indian market. | Can be comparatively lower, especially when smaller companies have fewer buyers and sellers during volatile market conditions. | Generally better than small-cap stocks but usually lower than the large companies included in the Nifty 50. |
| Company Universe | Limited to the 50 companies that make up the Nifty 50 Index. | Primarily focuses on companies ranked below the top 250 by market capitalisation. | Primarily focuses on companies ranked between 101 and 250 by market capitalisation. |
| Suitable for | Investors looking for simple exposure to India’s leading companies and who want to build a long-term core equity portfolio. | Investors with a high risk appetite, a long investment horizon and the ability to handle sharp market fluctuations | Investors looking for higher growth potential than large caps and who are comfortable taking more risk for long-term wealth creation. |
Benefits and Risks of Nifty 50 Mutual Funds
The benefits of Nifty 50 mutual funds are given below.
- Exposure to leading companies: Investors get access to 50 large and established companies from different sectors through one fund.
- Lower dependence on fund managers: Since most Nifty 50 funds are passively managed, their performance mainly depends on how closely they track the index rather than on individual stock-picking decisions.
- Diversification: Instead of buying individual stocks, the investment is spread across multiple companies and industries included in the Nifty 50.
The risks associated with Nifty 50 mutual funds are given below.
- Limited to large-cap companies: These funds do not provide direct exposure to mid-cap or small-cap companies, which may perform differently and offer different growth opportunities.
- Market risk: The value of the fund can fall when the overall stock market declines. Even large and established companies are affected by market corrections.
- Concentration in major sectors: Certain sectors and companies can carry higher weights in the Nifty 50, meaning their performance can have a significant impact on the fund.
Who Should Consider and Avoid Nifty 50 Funds?
Nifty 50 funds can suit investors looking for simple exposure to India’s largest companies. However, they may not be the right choice for every investment goal or time horizon.
Investors who should consider investing in Nifty 50 funds are given below.
- Passive investors: These funds can suit people who prefer to follow an index rather than rely on active fund management.
- Beginners in equity investing: Investors who do not want to research and select individual stocks can get exposure to 50 major companies through one fund.
- Long-term investors: People investing for long-term goals such as retirement or wealth creation may consider Nifty 50 funds.
Investors who should not choose Nifty 50 funds are given below.
- Investors seeking mid-cap or small-cap exposure: Nifty 50 funds focus on large companies, so investors looking specifically for smaller, faster-growing businesses may need other fund categories.
- Short-Term Traders: Nifty 50 funds are equity investments and may not be suitable for people expecting guaranteed or fast profits.
How to Choose a Nifty 50 Mutual Fund
Since all Nifty 50 mutual funds broadly invest in the same 50 companies, choosing among them is less about finding the fund with the highest past returns and more about assessing how efficiently and cost-effectively the fund tracks the index.
- Investment Goals: Consider whether a Nifty 50 fund fits your time horizon, financial goals, and ability to handle equity market fluctuations. Even a low-cost and efficiently managed index fund can experience losses during market downturns.
- Tracking Difference: Tracking difference shows how much a fund’s return differs from the Nifty 50 Index’s return over a period. A smaller difference generally indicates that the fund has followed its benchmark more closely.
- SIP Requirement: Check whether the fund’s minimum lump-sum investment and SIP requirements match your budget. Several Nifty 50 funds allow investors to start with relatively small amounts.
- Performance History: An older fund provides a longer record for comparing how closely it has tracked the Nifty 50 across different market conditions. However, a longer history alone does not guarantee better future performance.
SIP vs Lump Sum for Nifty 50 Funds
The difference between SIP and lump sum for Nifty 50 mutual funds is outlined below.
| Basis | SIP | Lump Sum |
| Meaning | Invest a fixed amount in a fund regularly, typically monthly. | Invest a large amount in the fund at one time. |
| Suitable for | Investors who earn regularly and want to build their investment over time. | Investors who already have a larger amount available to invest. |
| Amount | A smaller amount and increase it over time. | A larger amount to be available upfront. |
| Market Timing | Money is invested at different market levels, so the investments do not depend on one entry point | The return can be more affected by the market level when they invest. |
Direct vs Regular Nifty 50 Funds
The difference between direct and regular Nifty 50 funds is given below.
| Basis | Direct Nifty 50 Funds | Regular Nifty 50 Funds |
| Meaning | Invest directly in the Nifty 50 Mutual Fund scheme without a distributor. | Invest through a mutual fund distributor or intermediary. |
| Charges | Usually lower because no distributor commission is included. | Usually higher because the expense ratio includes distributor-related costs. |
| Suitable for | Investors who can research funds and manage their investments themselves. | Investors who want help from a distributor while selecting and managing funds. |
| Returns | Can achieve slightly better returns over time due to lower expenses. | Returns may be slightly lower due to the higher expense ratio. |
Taxation of Nifty 50 Mutual Funds
The taxation of Nifty 50 mutual funds depends on the type and holding period of the funds, according to the Income Tax Act, 2025.
For Equity Mutual Funds
- Short-term Capital Gain: When the investment is redeemed within less than one year or 12 months, it is considered short-term capital gains and is taxed at 20%.
- Long-Term Capital Gain: When the investment is redeemed after 12 months, it is considered long-term capital gains and is taxed at a rate of 12.5% on the total income, with an exemption up to ₹1.25 lakhs.
Other Best Mutual Funds Categories
Investors can check other Stockgro blogs, including those on various mutual funds.
FAQs
Based on the 3-year CAGR in the comparison as of 2 September 2026, the top-performing funds include Navi Nifty 50 Index Fund, Nippon India Index Fund Nifty 50, Bandhan Nifty 50 Index Fund, Aditya Birla Sun Life Nifty 50 Index Fund and SBI Nifty Index Fund.
It depends on your investment goals and time horizon. Nifty 50 funds may suit long-term investors who can handle equity-market fluctuations.
Based on the table’s 3-year CAGR, Navi Nifty 50 Index Fund and Nippon India Index Fund Nifty 50 are the best performers, with returns of 8.42% each.
Compare factors such as tracking difference, expense ratio, AUM, performance history and minimum SIP requirement. Since these funds track the same index, lower costs and efficient tracking can be important factors.
Nifty 50 funds may suit passive investors, beginners and long-term investors who want exposure to India’s leading companies without selecting individual stocks.
Based on the given data, Nippon India Index Fund Nifty 50 and Kotak Nifty 50 Index Fund are tied as the best-performing funds over the last one year, with both recording a return of -1.74%. Although the return is negative, these two funds performed better than the other funds in the given comparison.
No. Nifty 50 funds invest in equities and are exposed to market risk. Their value can fall during market corrections, even though they invest in large and established companies.
Rather than trying to perfectly time the market, investors should consider their financial goals, investment horizon and ability to handle market volatility before investing.
A Nifty 50 fund offers market-linked growth potential with risk, while an FD generally offers fixed returns and greater certainty. The better option depends on your goal, time horizon and risk tolerance.
